CalPERS ACO Pilot Reports Millions in Expected Savings

An ACO pilot involving the California Public Employees’ Retirement System, Blue Shield of California, Catholic Healthcare hospitals, and Hill Physicians Medical Group is expecting upwards of $15m in expected savings, a representative of CalPERS reported.  In addition, the pilot program, which began its two year operation in January 2010, says its collaboration and coordiation of care helped significantly reduce hospital readmissions, inpatient stays, and length of inpatient visits for its 41,000 patients.

So this very well may be a boon for patient care as predicted, but is it worth the investment for providers?  No word on whether the potential savings rate for the pilot represents a return on the investment of the participants, though perhaps this positive news will breathe some life into the market’s outlook on CMS’s Proposed Rule and the potential for ACOs to accomplish the goals of better care at lower cost while still representing real financial incentives for providers to make the necessary investments.

Read more here.

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